3 Things to Know About Bitcoin This Week
Key Insights
Despite recent price drops, a huge percentage of Bitcoin holders have maintained their standing.
On the flip side, many short-term Bitcoin holders are currently at a loss, which might lead to panic selling if another fear wave hits the market.
The Ichimoku cloud and MACD are showing signs of an incoming bullish trend for Bitcoin.
Despite challenges like geopolitical tensions and government selloffs, analysts are generally positive on Bitcoin.
The market is expected to remain relatively stable until the U.S. presidential election in November.
Bitcoin continues to capture the attention of analysts and traders alike despite its sluggish price action as of late.
This week, several key events and metrics are set to shape the price action of the flagship cryptocurrency.
And amid the ongoing debates about Bitcoin's future, here are some of the biggest things to know this week.
1. Here’s What’s Been Up With Bitcoin Holders
For starters, publicly available data shows a strong commitment to Bitcoin on the part of its holders.
According to data from Glassnode in a recent post, around 75% of all the circulating Bitcoin on the market has remained unchanged in the last six months, despite the ongoing 21% drop in the cryptocurrency's price since the March all-time high.
This means that the long-term holders have remained unfazed despite the bearishness and are keeping their coins intact for the next move to the upside.
On the flipside, though, analyst James Check pointed out that while the long-term holders seem unbothered, things are a completely different story with the short-termers.
According to the analyst, over 80% of this cohort are currently underwater after buying Bitcoin at higher prices than it currently sits.
While the long-termers attitude towards Bitcoin, the situation of the short ones might be a problem.
This is because if another wave of panic sweeps through the market, this cohort will likely panic sell, crashing the price of Bitcoin and causing a repeat of the bearish trends in 2018, 2019, and mid-2021.
2. Bullish Signals Emerge Amidst Price Fluctuations
Despite the ongoing market volatility, some technical indicators offer a sense of relief.
Over the weekend, Bitcoin tried several times to break above the $60,000 level despite its current price of around $58,000 at the time of writing.
However, notably, according to analyst Titan of Crypto in a recent tweet, the Ichimoku cloud indicator on daily timeframes started to flash a bullish crossover.
The analyst says that the so-called "T.K. crossover," which occurs when the Tenkan-sen (conversion line) crosses above the Kijun-sen (baseline), now shows that the market momentum may be shifting in favour of buyers.
Bitcoin in the Ichimoku Cloud indicator
The MACD, on the other hand, according to Trader Tardigrade, shows "double bullish" patterns.
Because of this, the analyst says that “$BTC has a very high chance of pumping again SOON."
3. The Market Sentiment Remains Cautiously Optimistic for 2024
As Bitcoin continues to struggle to break above $60,000, analysts and trading desks generally remain optimistic about its future over the rest of the year.
So far, the geopolitical tensions and uncertainty surrounding the November U.S. presidential election have tested the market, which has maintained encouraging resilience.
According to QCP Capital, the market has braved several of these “disruptors" so far and will likely continue to do so until the end of the year.
Despite the U.S. government selling 10,000 Bitcoin (around $591 million) linked to the Silk Road via coinbase and the Mt. Gox estate still holding a $2.7 billion stash, the price of Bitcoin (and the general market) is expected to remain stable until the end of 2024, or until the elections In November, at least.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.